Rainbow Children's Medicare (RAINBOW) Q1 26/27 earnings summary

Executive summary

• Achieved 33% year-on-year revenue growth in Q1 FY27, reaching INR 4,700 million, with PAT up 16% to INR 625 million and EBITDA up 30% to INR 1,346 million, driven by strong demand across core specialties and balanced contributions from mature and new hospitals.

• Operational expansion continued with 24 hospitals across 9 cities, 2,565 beds, and over 1,075 doctors, including new agreements in Mumbai, Nellore, and Guntur, marking entry into Western India and strengthening Andhra Pradesh presence.

• Recognized for clinical excellence with multiple JCI and NABH accreditations, awards for leadership and workplace practices, and notable achievements in complex pediatric cases.

• Five-year plan to add 2,500 beds, targeting a total network capacity of 5,000 beds with INR 2,200 crore CapEx.

• Unaudited standalone and consolidated financial results for Q1 FY27 were approved by the Board of Directors on July 30, 2026.

Financial highlights

• Q1 FY27 operating revenue reached INR 4,699.9 million, up 33% year-on-year, with EBITDA at INR 1,346.5 million and a margin of 28.6%.

• Profit after tax was INR 625.4 million, a 16% year-on-year increase.

• Inpatient discharges, outpatient consultations, and deliveries grew by 28%, 25%, and 23% respectively.

• Total expenses rose 32% year-on-year, mainly due to higher employee benefits and professional fees.

• Organic revenue growth (excluding acquisitions) was 24% year-on-year.

Outlook and guidance

• Expansion plans target 3,725 beds by FY29, with new hospitals in Coimbatore, Gurugram, Indore, Mumbai, and Pune, and completion of the Malad, Mumbai hospital expected by Q2 FY27.

• Targeting to double top-line revenue over the next four years, implying a 20% CAGR.

• EBITDA margin guidance for FY27 and FY28 is 24%-25% pre-Ind AS, despite recent margin pressures from rapid bed additions.

• Acquisition of a 64% stake in Super Prime Medical Care LLP (Nellore, Andhra Pradesh) is expected to close in Q2 FY27.

• Focus on replicating the hub-and-spoke model in new regions and tier-2 cities.